Global Breakfast Cereals Market: Snapshot
In order to outgun their competitors, keen players in the global market for breakfast cereals are coming up with a different varieties to cater to the different tastes and requirements of customers. Breakfast cereals, which originated in the U.S., have now become a staple breakfast food in almost every part of the world, thanks to globalization. Their worldwide market has been boosted by many factors. One of them is the fact that they are hassle free to make – one can either have them straight from the packet or add milk to them. The mushrooming supermarkets, hypermarkets, and convenience stores worldwide is also seen to catalyzing growth in the global breakfast cereals market.
Posing a hindrance to the market, on the other hand, is the drop in the supply of palm oil, one of the primary ingredients used in making breakfast cereals. In addition, the emerging trend in developed countries of the world to go for wholesome and healthier breakfast is also dealing a blow to the sales of breakfast cereals. However, savvy players’ constant focus on coming up with different types of breakfast cereals will likely help overcome the challenge.
A report by Transparency Market Research predicts the global breakfast cereals market to expand at a lackluster CAGR of 4.10% during the period between 2013 and 2019 to become worth US$43.2 bn by 2019 from US$38.3 bn in 2013.
Minimal Preparation Time Drives up Sales of Ready-to-eat Breakfast Cereals
Depending upon the type, the global market for breakfast cereals can be broadly split into ready-to-eat and hot cereals. Of the two, the sales of ready-to-eat breakfast cereals is outstripping that of hot cereals because of the former’s minimal preparation time. Europe and North America generate most of the demand for ready-to-eat products. Asia Pacific, on the other hand, sees higher sales of hot breakfast cereals. Vis-à-vis value, by 2019, the hot breakfast cereals segment is predicted to hold 18% share in the global breakfast cereals market.
Changing Lifestyles make Asia Pacific Attractive Market
From a geographical standpoint, Asia Pacific is a key region in the global market for breakfast cereals. This is because of the rapid pace of industrialization and urbanization that has increased the spending capacity of the people and changed their lifestyles too. As a result, they have started having western food for their breakfast which is usually hassle-free to make. The increasing number of convenience stores in the region is also serving to propel the market for breakfast cereals by upping the brand visibility for manufacturers of breakfast cereals. The fast-expanding major economies of India and China with high population density are the primary drivers of growth in Asia Pacific. A release by the World Bank reveals that the middle class population of India and China will likely become 1.2 bn by 2030. This is slated to benefit the overall market.
Apart from Asia Pacific, North America and Europe are other key markets. Being developed regions, they have generated robust demand for breakfast cereals in the past decade. In the years ahead, the markets in the two regions will likely expand further because of product innovation. Manufacturers are increasingly focusing on coming up with cereals with different flavors and ingredients to attract more consumers and retain existing ones.
PepsiCo, Kellogg Co., Cereal Partners Worldwide, Post Holdings, and General Mills are to name a few prominent participants in the global market for breakfast cereals.
Breakfast cereals are a wide variety of cereal products consumed all over the world, majorly as a breakfast item or a snack. Breakfast cereals originated and were popularized mainly in the U.S., but in the past few decade they have spread to all developed economies as well as most developing economies. The increasing preference for Western dietary patterns in developing countries has led to significant growth of the global breakfast cereals market in recent years.
The report examines the global breakfast cereals market’s historical figures, illustrating its growth trajectory to its present form. The past and present market figures regarding value and volume are analyzed to present a reliable estimate of the global breakfast cereals market’s growth trajectory in the period from 2013 to 2019. Trusted analytical tools such as SWOT analysis, Porter’s five forces analysis, and market attractiveness analysis have been used in the report to ensure the accuracy of the data presented in the report.
Overview of the Global Breakfast Cereals Market
According to detailed research conducted by TMR analysts, the global breakfast cereals market was worth US$32.5 bn in 2012. The high value of the breakfast cereals market can be attributed to its cosmopolitan spread and steadily increasing demand. The market is expected to exhibit a steady 4.1% CAGR from 2013 to 2019, reaching a projected value of US$43.2 bn by 2019.
Breakfast cereals are of two types: hot and ready to eat (RTE). Due to the minimal preparation required for RTE breakfast cereals, they enjoy immense popularity in North America and Europe. A whopping 85% of the demand for breakfast cereals from these two developed regions consisted of RTE cereals. In contrast, the traditional preference for a hot breakfast in Asia Pacific has led to better prospects for the hot cereals segment in Asia Pacific. Hot cereals are further expected to rise in demand over the forecast period. By the end of the forecast period, hot cereals are expected to account for 18% of the global breakfast cereals market.
Geographically, North America and Europe account for the majority of the global breakfast cereals market at present, due to the early adoption of breakfast cereals as the standard breakfast fare. In contrast, the Asia Pacific market for breakfast cereals has been a late bloomer and has shown impressive growth rates in the past few decades. Over the forecast period, the Asia Pacific breakfast cereals market is expected to exhibit the highest growth rate, leading to a respectable 13% share in the global market by 2019.
Companies Mentioned in the Research Report
The report profiles and examines major companies operating in the global breakfast cereals market, such as Kellogg Co., PepsiCo., General Mills, Post Holdings, Cereal Partners Worldwide, and the Weetabix Food Company. This provides a complete picture of the competitive landscape of the global breakfast cereals market.
Segmentation of the global breakfast cereals market by product type:
- Hot Cereals
- Ready to Eat Cereals
Major regions analyzed in this research report are:
- North America
- Asia Pacific
- Rest of the World
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
Key highlights of this report
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments